Mitsubishi Heavy Industries Opens Plant in China Using 'Shared Factory' Concept

The new facility will serve both for production of gear manufacturing equipment and for expanded production of rubber tire machinery.

At a facility that will simultaneously serve as a production base for other company business,
Mitsubishi Heavy Industries, Ltd. is planning to launch production of gear cutting machines in China.

The company will build a new plant on the premises of Changshu Ryoju Machinery Co., Ltd. in Changshu, Jiangsu Province, an existing local production base for the company's rubber tire machinery. The new facility will serve both for production of gear manufacturing equipment and for expanded production of rubber tire machinery.

Production of gear cutting machines at the new plant will begin in March 2011. The initiative will mark the implementation of MHI's first shared factory scheme for launching overseas production.

Mitsubishi sees production of gear manufacturing equipment at CRM as a pilot case of its shared factory scheme. Going forward the company intends to apply the scheme to promote further enhancement and expansion of its overseas production plants.

Mitsubishi decided to launch production of gear cutting machines in China in expectation of large demand from Chinese automobile manufacturers, where output has been expanding rapidly. The company will initially manufacture its best-selling GE15A Dry Cut Gear Hobbing Machine at the new plant.

By securing the same technological features and high quality as in corresponding machines being produced in Japan, the company intends to expand sales to manufacturers of high-precision, small-size gears for automobiles, motorcycles, decelerators, etc. The company looks to produce 40 units during the first year, and 100 units by the fourth year.

In addition to being equipped with various gear cutting machine manufacturing equipment, including assembly and measurement-related facilities, the new plant will also have a showroom to exhibit the machine as well as to accommodate test-cutting requests from potential customers. Plans call for construction to begin this month and be completed next February. To expand production of rubber tire machinery, besides the equipment installations in the new plant, a 5-face machining center will be installed in the main CRM plant.

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